The Euro US Dollar exchange rate has been trending tightly during trading today, owing to recent positive Eurozone news only having a limited positive effect on the single currency.

This has come from Germany, covering Ifo expectations, current conditions and the business climate in December.

In all cases, figures have risen, though only current conditions and business climate stats have beaten forecasts.

Other Eurozone data today has shown October construction output and Q3 wage growth rise, beating forecasts in both cases.

Given that most of the day’s Eurozone news has been positive, it is possible that underlying concerns about another flaring up of the Greek debt crisis are keeping investors wary of piling into the Euro at the present time.

The latest US news has been negative, focusing on international perceptions of President-Elect Donald Trump.

In the aftermath of an apparently resolved incident involving a confiscated US naval drone by the Chinese navy, Chinese state-controlled newspaper Global Times stated that;

‘Trump is not behaving as a president who will become master of the White House in a month. He bears no sense of how to lead a superpower’.

Trump had petulantly declared that China could keep the drone, and had also previously inflamed US-China tensions by contacting the head of Taiwan, a contentious territory that is nominally claimed by China.

The incident points to another degradation of relations between the two major nations and bodes poorly given that Trump is still not even officially the President.

The Euro US Dollar exchange rate has the potential to advance further this week, given the latest expectations for mid-week Eurozone data.

Coming on Wednesday afternoon, this will cover the consumer confidence flash for December, and is expected to show an improvement in the figure from -6.1 to -5.6.

The next US news of the week will arrive much earlier, consisting of this afternoon’s Markit composite and services PMIs for December. In their preliminary ‘flash’ forms, both fields are expected to fall, which could weaken USD EUR demand.

Current Interbank Exchange Rates

The Euro US Dollar (EUR USD) exchange rate was trending in the region of 1.04 and the US Dollar Euro (USD EUR) exchange rate was trending in the region of 0.95 today.